TRANSPORT and Electricity are among the four major constraints to doing business in Rwanda, as identified by the Investment Climate Assessment Survey.
The ICA Survey report was officially released yesterday by World Bank Group and Ministry of trade and industry. Other two challenges include taxes and access to finance.
The study focused on competitiveness drivers including governance, tax, infrastructure, finance, regulation, and access to land, skills shortage and macro-economic stability.
It was conducted in 340 firms in Kigali and Butare, more than 70 percent of firms in the manufacturing sector reported electricity to be a major constraint followed by tax rates with 50 percent and access to finance with 40 percent.
According to the survey, 73 percent of large firms have access to formal sector credit compared to 31percent of small firms (SMEs).
The report indicated that the recent regulatory and governance reforms lowered costs for business. The report predicts further lifting of cost burdens when ongoing reforms are completed leading to better access to electricity, transport and finance.
In his presentation, Moses Kibirige from World Bank Group, said that Rwanda is doing extremely well in terms of governance and informal payments to officials.
Rwanda has demonstrated enormous success in improving its investment climate due to a high level of government commitment, clear agenda and involvement of varied stakeholders that have contributed to the achievement, said Jean Phillippe Prosper IFC Director for Eastern and Southern Africa.
ICA encourages policies to strengthen Rwandas participation in regional infrastructure investment and service initiatives. The initiatives include efforts to improve the functioning of cross-boarder transit systems, power pools and regional skills development programs.
Monique Nsazabaganwa Minister of Trade and Industry who was present at the launch of the findings said Rwanda is good at evidence based and it will build on the past reforms.
We are sparing no effort to strengthen our institutions and endeavor to make right choices, she said.
According to a press statement from World Bank, ICA analyses the conditions for private investment and enterprise growth to pinpoint the areas where reforms is most needed to improve the private sectors productivity and competitiveness.
Working with its Development Partners, including the Netherlands and the United Kingdoms Department for International Development, the World Bank Group provides support to the Rwandan government to help improve its business environment, build institutions and reduce the cost of doing business.